SVB has nothing to do with this, it’s crazy that people think that SVB is a cause and not a symptom.
Comment on Epic Games Cutting 870 Jobs, 16 Percent Of Its Workforce, also selling Bandcamp
Jaysyn@kbin.social 9 months ago
The effects of the SVB bankruptcy are still rippling out.
echo64@lemmy.world 9 months ago
spudwart@spudwart.com 9 months ago
I think you’re thinking of GarageBand.
infinitepcg@lemmy.world 9 months ago
or Bootcamp
IHeartBadCode@kbin.social 9 months ago
I think this might have more to do with the beating that Epic took from Apple in court. The 2021 decision of their lawsuit for anti-competitive behavior against Apple was upheld this year. That was not cheap to litigate that.
I think the Bandcamp sell off is a good indicator of all of this. Epic obtained Bandcamp in March 2022, to explicitly have their IAP system integrated into it. Google shut them down and told them they would start collecting the 30% usual due. Epic filed suit and Google gave them an exception for the time being with the agreement that 10% would be held in escrow until the conclusion of the trail. With many of the arguments in the Apple case similar to Google's case, I'm pretty sure Epic sees the loss coming from a mile away.
All in all, what I think can be drawn from this. Epic made a big bet on "their store" and that's fading away with mobile devices locking people into a marketplace that is "distinctly not Epic". While putting such a bet wouldn't normally kill a company, Epic sextupled down on it and I think how hard they went for "their marketplace" is what's done them in.
LetMeEatCake@lemm.ee 9 months ago
That and the EGS seem to be where Epic funneled all their profits from the height of Fornite. That neither has worked out puts them on shakier ground. How many billions of dollars has been spent on EGS with it being way behind their revenue targets?
As things stand, Epic has very little in the way of a next big revenue source when Fortnite starts to fade as something new takes its place. That (probably) isn’t right around the corner but it will happen eventually. Their bet was on running major digital storefronts; that hasn’t worked out. UE will continue to make good money but not anywhere near enough to sustain the company as it is. UE is simply far smaller than something like FN.
This is likely them realizing this in conjunction with what you said. They need a new big revenue source in the pipeline, since digital storefronts won’t be it. Whatever that next thing is will need lots of money.